De Beers may sight estimated at $560M

Avi Krawitz

The De Beers May sight closed with an estimated value of $560 million as the rough diamond market remains steady. Sightholders reported that prices on some boxes were adjusted slightly; however,  on average, prices and assortments were basically unchanged.

The market is stable but at high rough price levels, whereby we don’t see profit margins as a manufacturer,” said one sightholder. “There are certain areas where De Beers prices are high, but we don’t have much of an argument for a reduction in prices. Goods are selling and polished demand is there.

Dealers noted that rough trading on the secondary market has slowed with boxes selling at premiums of around 5 percent with credit terms. Sightholders explained that rough demand declined after De Beers raised prices at the previous March-April sight, signaling the end of a strong first quarter. Rapaport estimates that rough prices have increased by between 7 percent and 10 percent since the beginning of the year.

Mike Aggett, the CEO of H. Goldie & Company, a diamond broker for De Beers sightholders, reported that the mood at the sight was more subdued than recent months as the industry moves into a traditionally quieter period.

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Source Rapaport